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European Management Journal Vol. 25, No. 5, pp.

395–410, 2007
Ó 2007 Elsevier Ltd. All rights reserved.
0263-2373 $32.00
doi:10.1016/j.emj.2007.08.005

How to Sustain the


Customer Experience:
An Overview of
Experience Components
that Co-create Value
With the Customer
CHIARA GENTILE, Politecnico di Milano, Italy
NICOLA SPILLER, Politecnico di Milano, Italy
GIULIANO NOCI, Politecnico di Milano, Italy

Nowadays the experience factor plays an increas- Keywords: Experimential marketing, Customer
ingly important role in determining the success of experience, Customer behaviour
a company’s offering. The literature on Customer
Experience is growing fast and the debate among
scholars and practitioners is fervent. While many Introduction
studies explore such theme from a theoretical view-
point, tools aimed at supporting marketing manag- Nowadays competing in a global market has become
ers in devising the right stimuli to support an increasingly difficult and only the creation of long-
excellent Customer Experience are still scarce. In lasting competitive advantages seems to offer an ave-
this perspective, this study sheds some light on nue for survival. But where should a company start
the concept of Customer Experience, and on how looking to develop a competitive advantage? Many
the right environment and setting for the desired scholars advocate that one of the main routes to
Customer Experience should be created in such a reach it is by means of a much stronger focus on
way as to contribute to the value creation for cus- the customer (Douglas and Craig, 2000; Farinet and
tomers and the company itself. Drawing from the Ploncher, 2002; Kotler and Keller, 2006; Peppers
results of a survey submitted to several groups of and Rogers, 2000).
customers, this paper attempts to understand the
specific role of different experiential features in In the last years, and particularly in the process of
the success achieved by some well-known prod- devising a company’s strategy, this growing attention
ucts. Following the empirical investigation, this on the customer resulted in an increased focus on
work also suggests an interpretative model to sup- CRM philosophies. More recently, as the number of
port the marketing manager in generating the contact points between a company and its customers
proper stimuli to activate the various components increased, such attention to the customer revealed the
of the Customer Experience. fundamental importance of monitoring the many
Ó 2007 Elsevier Ltd. All rights reserved. experiences that originate from those contact points.

European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 395
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

In this perspective, the central idea is to expand the facts that are conducive of a (Customer)
transaction-based notion of Customer Relationship Experience, and which can then be used by con-
to the ‘‘continuous’’ concept of Customer Experience. sumers to co-produce their own experience.
Consequently, it becomes necessary to consider
aspects that refer to the emotional and irrational side
of customer behavior (Holbrook and Hirschman,
State-of-the-art Literature on Experiential
1982) and which, more than the only rational ones,
account for the whole experience coming from the Marketing
set of interactions between a company and its cus-
tomers. Such experience plays a fundamental role The concept of Customer Experience was firstly con-
in determining the customers’ preferences, which ceived in the mid-1980s when, along with the main-
then influence their purchase decisions. In fact, stream literature in consumer behavior that deemed
whilst the classical economic theory regards the con- customers as rational decision makers, a new experi-
sumer as a logical thinker whose purchasing deci- ential approach offered an original view to consumer
sions are based on rational problem solving, the behavior (Holbrook and Hirschman, 1982). The
recent developments on the literature on economics importance of various hitherto neglected variables
and marketing, and particularly the new stream of was re-considered: ‘‘the role of emotions in behavior;
the Experiential Marketing, advocates for the exploi- the fact that consumers are feelers as well as thinkers
tation of intangible elements linked to the emotional and doers;. . .the roles of consumers, beyond the act
value perceived by customers. of purchase, in product usage as well as brand
choice’’ (Addis and Holbrook, 2001). Despite these
In addition, a similar position can be found in the initial sparks, the concept of Customer Experience
managerial field; in fact, 85% of senior business man- came more relevantly to the fore in the 1990s with
agers believe that differentiating solely on the tradi- Pine and Gilmore’s book on the Experience Economy
tional elements, such as price, product and quality, (1999); the authors present the ‘‘experiences’’ as a new
is no longer a sustainable competitive advantage economic offering, which emerges as the next step
and even more senior managers hold the Customer after commodities, goods and services in what they
Experience as the next competitive battleground call the progression of economic value. Hence, in the fol-
(Shaw and Ivens, 2005). lowing years a flourishing of different contributions
focused their attention on the Customer Experience
Despite such vibrant enthusiasm, however, the real- as a new lever to create value for both the company
ity is very different, and far from being close to either and the customer (Addis and Holbrook, 2001;
what the literature advocates or what many compa- Carù and Cova, 2003; Ferraresi and Schmitt, 2006;
nies claim in their statement of intent. Forlizzi and Ford, 2000; LaSalle and Britton, 2003;
Milligan and Smith, 2002; Ponsonby-Mccabe and
In addition, the scientific literature on this topic Boyle, 2006; Prahalad and Ramaswamy, 2004; Sch-
shows the limitations and inadequacies that are typ- mitt, 1999; Schmitt, 2003; Shaw and Ivens, 2005;
ical of those research fields which are still far from Smith and Wheeler, 2002). The starting point of these
their maturity, particularly as it lacks both in terms approaches is a renewed way to consider the well-
of a precise terminology and of structured and stan- known concept of consumption: it becomes a holistic
dardized approaches that can support the adoption experience which involves a person – as opposed to a
of the above mentioned practices. customer - as a whole at different levels and in every
interaction between such person and a company, or a
Given these considerations, the aim of this paper is to company’s offer (LaSalle and Britton, 2003). In this
contribute towards the formalization and the perspective, the memorability of the ‘‘staged’’ events,
improvement of the existing models and approaches as in Pine and Gilmore’s works, is no longer of pri-
on the matter. In particular, the present study con- mary importance: what contributes to the creation
tributes to the scientific debate in terms of a further of value is not so much selling memorable experi-
rationalization of the approaches and theories so far ences but to enable the customer to live all the
developed and in attempting to provide an answer moments of the relationship with a company in an
to certain open issues. Specifically, in this work it is excellent way, even beyond her expectations (LaSalle
provided: and Britton, 2003) or, according to the viewpoint of
Prahalad and Ramaswamy (2004), to co-create their
v a conceptual definition of ‘‘Customer Experi- own unique experience with the company. In this
ence’’ based on the most relevant scholarly and perspective, companies do not sell (or stage, accord-
managerial contributions; ing to Pine and Gilmore’s perspective) experiences,
v an analysis of the specific role played by the but rather they provide artifacts and contexts that
experiential features in a sample of innovative are conducive of experiences and which can be prop-
products with respect to the outcomes of their erly employed by consumers to co-create their own,
introduction to the market; unique, experiences (Carù and Cova, 2003; Carù
v an interpretative model aimed to support a com- and Cova, 2007). Indeed, Schmitt (1999) states that
pany in the process of devising contexts and arti- ‘‘as a marketer you need to provide the right

396 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

environment and setting for the desired customer from the debate in literature, a definition of Cus-
experiences to emerge’’. More recently, a comprehen- tomer Experience which underlies the subsequent
sive contribution has been offered in the book ‘‘Con- analysis; the second part delves into the concept of
suming Experience’’ (Carù and Cova, 2007), in which Customer Experience and introduces its elementary
the authors identify a ‘‘continuum of consuming dimensions: the experiential components.
experiences’’ ranging from experiences that are
mainly constructed by the consumers, to experiences In the third part we describe a general framework
that are largely developed by companies (a kind of whereby the inter-relations between the concepts of
approach which is close to Pine and Gilmore’s view- Customer Experience and value exchanged are out-
point), passing through experiences that are co-cre- lined, as well as the relationships between such con-
ated by consumers and companies (as per Prahalad cepts, the customer and the company.
and Ramaswamy). Accordingly, the role of the firm
changes in each stage of the continuum: from a com-
pany pursuing almost a traditional product or ser- A Definition of Customer Experience
vice marketing approach to a company adopting a
holistic and immersive experiential marketing For our purpose, we consider a definition of Cus-
approach (thus providing immersive experiences, tomer Experience which takes into account the most
whereby a consumer dives into an experience that relevant scientific contributions; specifically, we
is fully developed in details by a company), passing define the concept of Customer Experience as an evo-
through a co-creation stage, in which a company pro- lution of the concept of relationship between the
vide the consumer with the basic platform and raw company and the customer.
materials that are then being used by the consumer
to mold and obtain his/her own experience. ‘‘The Customer Experience originates from a set of interactions
between a customer and a product, a company, or part of its orga-
nization, which provoke a reaction (LaSalle and Britton, 2003;
As the scientific contributions are rich and diverse, so Shaw and Ivens, 2005). This experience is strictly personal
are the different interpretations and conceptualiza- and implies the customer’s involvement at different levels
tions of the Customer Experience offered by each (rational, emotional, sensorial physical and spiritual) (LaSalle
author; nevertheless, despite the differences of per- and Britton, 2003; Schmitt, 1999). Its evaluation depends on
spective and the various models proposed, one can the comparison between a customer’s expectations and the
identify some common core characteristics of the stimuli coming from the interaction with the company and its
offering in correspondence of the different moments of contact
Customer Experience. First, it has a temporal dimen- or touch-points (LaSalle and Britton, 2003; Shaw and Ivens,
sion which originates from the entire set of contact 2005).’’
points (or moments of truth, Carlzon, 1987) between
the customer and the company, or the company’s This definition serves as a basis for a deeper con-
offer (Addis and Holbrook, 2001; Carù and Cova, ceptualization of Customer Experience, which is
2003; LaSalle and Britton, 2003), then it is strictly per- explained in the following paragraph.
sonal and it involves and engages a customer at dif-
ferent levels (rational, emotional, sensorial, physical
and also ‘‘spiritual’’) so as to create a holistic Gestalt The Multidimensionality of the Customer
(Brakus, 2001; Schmitt, 1999). Experience

While the overall picture offers plenty of potentiality, While still complying with the fundamental rule that a
if we exclude some pioneers, only few companies good experience must holistically and consistently
have adopted the perspective of the Customer Expe- involve a person at different levels, and following pre-
rience, whereas the many are still far from the level vious conceptualization, we base our analysis on the
of success that can potentially be obtained by lever- psychological concept of modularity of mind (Pinker,
aging on the Customer Experience. 1997). Various psychological and behavioral studies
(Anderson, 1995; Brakus, 2001; Fiske and Taylor,
Two facts can then be regarded as main reasons for 1991; Goleman, 1995; Schmitt and Simonson, 1997;
such slow adoption rate: one is the lack in the extant Tavassoli, 1998) distinguish three basic systems –
literature of models, interpretation and conceptuali- sensation, cognition and affect – each with its own struc-
zation offering a common terminology and a shared tures, principles and mutual interactions. In addition,
mindset, the other is the lack of structured manage- when considering a person per se, these studies take
rial approaches, which can only be overcome by a into account the set of one’s actions, the system of
deeper comprehension of the role played by the Cus- values and beliefs (from which lifestyles and behaviors
tomer Experience. are derived) and relationships.

Furthermore, the multidimensionality of experiences


Conceptual Framework is also widely recognized in the medical literature.
For instance, many neurophysiologic studies support
This paragraph outlines the reference framework of the widely accepted notion that pain is a multidi-
the research. In the first part we elaborate, drawing mensional experience including sensory, cognitive

European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 397
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

and emotional components (i.e. Fulbright et al., 2001); conscious mental processes; an offering may
this is consistently supported by findings from engage customers in using their creativity or
human brain imaging studies showing that multiple in situations of problem solving; furthermore a
cortical regions are activated during the presentation company can lead consumer to revise the usual
of painful stimuli (Coghill et al., 1994; Derbyshire and idea of a product or some common mental
Jones, 1998; Jones et al., 1991; Paulson et al., 1998; Tal- assumptions (as happened with the Barbie, the
bot et al., 1991). first doll with the image of a young woman).
v Pragmatic Component: a component of the Cus-
Therefore, drawing from this literature, and follow- tomer Experience coming from the practical act
ing the stream of other scientific works (Brakus, of doing something; in this sense the pragmatic
2001; Fornerino et al., 2006; Schmitt, 1999, 2003), we component includes, but is not exhausted by,
conceptualize the Customer Experience as a multidi- the concept of usability (the Apple iMac offers
mensional structure composed by elementary com- an optimal example of what it means to design
ponents. Nevertheless, one must keep in mind that, an extraordinary practical experience for users
as indeed the study proved, customers hardly ever based on usability standards). In fact it does not
recognize such kind of structure. In contrast, we only refer to the use of the product in the post-
expect that customers perceive each experience as a purchase stage, but it extends to all the product
complex but unitary feeling, each component being life-cycle stages (see for an example KitchenAid
hardly distinguishable from the others. and Whirpool’s initiative called Insperience).
v Lifestyle Component: a component of the Cus-
As above mentioned, our conceptualization of the tomer Experience that comes from the affirma-
elementary components of the Customer Experience tion of the system of values and the beliefs of
has some elements in common with the model pro- the person often through the adoption of a life-
posed by Schmitt (1999) and with the results of style and behaviors. Frequently an offering may
Fornerino et al. (2006). Moving from the basic idea provide such experience because the product
of ‘‘engagement at different levels’’ Schmitt (1999) itself and its consumption/use become means
proposes a modular conceptualization of the concept of adhesion to certain values the company and
of Customer Experience. Specifically, Schmitt identi- the brand embody and the customers share (as
fies five Strategic Experiential Modules: sensory experi- in the consumption of no logo products).
ences (sense); affective experiences (feel); creative v Relational Component: a component of the Cus-
cognitive experiences (think); physical experiences, tomer Experience that involves the person and,
behaviors and lifestyle (act); and social-identity expe- beyond, his/her social context, his/her relation-
riences that result from relating to a reference group ship with other people or also with his/her ideal
or culture (relate). Fornerino et al. (2006) analyze the self. An offering can leverage on such component
case of an immersive consumption experience and by means of a product which encourages the
identify five distinct dimensions: sensorial-percep- use/consumption together with other people
tual, affective and physical-behavioral (components) (i.e. Disneyland parks) or which is the core of a
and social and cognitive (facets). common passion that may eventually lead to
the creation of a community or still a tribe of fans
Hence, drawing from the extant literature, the (expe- (i.e. Ducati); finally the product (as haute couture
riential) components we have assumed as dimen- apparel) can be also a means of affirmation of a
sions of the Customer Experience are: social identity, inducing a sense of belonging or
of distinction from a social group; in this case
v Sensorial Component: a component of the Cus- the link with the lifestyle component is very
tomer Experience whose stimulation affects the relevant.
senses; an offering, whose aim is to provide good
sensorial experiences, can address sight, hearing,
touch, taste and smell so as to arouse aesthetical While mainly drawing from the results of the above
pleasure, excitement, satisfaction, sense of beauty mentioned works, the dimensions of the Customer
(good examples are Jamba Juice bars or Lush Experience we propose bear some differences. First,
stores). taking into consideration Schmitt’s act module, we
v Emotional Component: a component of the Cus- distinguish the physical aspects from the values
tomer Experience which involves one’s affective and join the physical part with the sensorial dimen-
system through the generation of moods, feel- sion. Such approach is also consistent with recent
ings, emotions; an offering can generate emo- neurophysiologic studies, whereby the physical and
tional experience in order to create an affective sensitive aspects are considered as a unitary dimen-
relation with the company, its brand or products sion. Secondly, we add a new dimension, namely
(good examples of brands which claim a strong the pragmatic component, which we drew from the
emotional link with their customers are Barilla extant literature on the user experience (Arhippai-
and Kinder Surprise). nem, 2004; Battarbee and Koskinen, 2005; Forlizzi
v Cognitive Component: a component of the Cus- and Ford, 2000) and which takes into account the
tomer Experience connected with thinking or aspects related to the human-objects interaction.

398 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

The General Framework Research Methodology


Drawing from the extant theories on value creation
and co-creation we propose a conceptual framework This study takes into consideration the role of the
where the concepts of Customer Experience and Customer Experience in determining the outcomes
exchanged value are encapsulated and their mutual- of the introduction of some well-known and remark-
relations and the inter-relations with the main entities ably successful products; to simplify the choice of the
(the company and the consumer) are outlined. cases to be analyzed, we select our sample of cases
among those that are considered, both in the existing
As before introduced, the Customer Experience origi- literature and in the common opinion, as successful
nates from a set of interactions between a customer and are characterized by widely-known brands with
and a product, a company or part of its organization a very strong image. Furthermore, we specifically
and the value that the consumer and the company consider products that are not characterized by a
gain is created through that set of interactions (Addis strong superiority in technological aspects (which
and Holbrook, 2001). Additionally, following Addis mainly convey functional value) so as to better
and Holbrook (2001) we make a distinction between isolate and outline the role played by experiential
two kinds of consumer value: utilitarian value (or func- features.
tional value) and hedonic value (or experiential value).
As the research project aims at suggesting an inter-
Such distinction draws from the subject-object inter- pretative model of the above described phenomena,
action as described by Holbrook (1999) whereby the and due to the novelty of the matters, an explorative
type of value depends on the relative weight of the study was carried on. For such reason, the analyzed
objective (or functional) features of the product over data were partially qualitative.
the subjective responses of the consumer (see Hol-
brook, 1999), which, turn, are elicited by specific Sampling of the Cases
aspects of the offer, which we refer to as ‘‘experien-
tial features’’. Equally, on the basis on the relative Cases were selected to achieve an appreciable degree
weight of the hedonic value over the utilitarian of heterogeneity in terms of Customer Experience
value, products can be classified into three groups: conveyed to the market. Specifically, two variables,
hedonic products, utilitarian products, and balanced prod- namely:
ucts, for which a balance between the two types of
value is present (see Figure 1). v type of knowledge embedded (tacit vs. coded, as per
Polanyi, 1983);
On the other hand, on the side of the company, the v durability (non durable, medium range, long range)
value generated from the set of interactions between
the customer and the company (even when mediated were considered for the selection process since
by the company’s offering) has a potential impact they have a considerable impact in determining the
both on the traditional performance measures (i.e. Customer Experience (see Figure 3).
market share, sales, profitability) and on a set of
intangible assets of the company (brand equity and
customer equity).
Investigation Methodology
The general framework is represented in Figure 2. The research has been carried out in two phases. In
the first part, the experiential features of the offering
proposed by the company have been analyzed by
means of secondary sources and direct interviews:
this phase was meant to understand the marketing
strategy used by the company and the aspects of
the Customer Experience on which the company
focused in its strategy. In the second part, a market
research has been performed to assess how custom-
ers perceive and evaluate the different components
of the Customer Experience and to assess which of
the six components were perceived as the most rele-
vant for each of the products analyzed. In particular,
following Calder and Malthouse, 2006 a survey, both
explorative and descriptive in nature, was carried
out by means of a structured questionnaire with mul-
tiple choice, rating scale and agreement scale ques-
tions based on a 1-4 Likert scale. The choice of the
Figure 1 Hedonic, Utilitarian and Balanced Products questionnaire as investigation means has been taken
(Adapted from Addis and Holbrook, 2001) both on the basis of some precedents (as the already

European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 399
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

Experience

Sensorial
Value proposition Emotional Value perception
Cognitive
Company Pragmatic Consumer
Value realization Lifestyle Value expectation
Relational

Company value (Ferraresi and Schmitt, 2006) Consumer Value (Holbrook 1999; Addis and
Holbrook 2001)
_ Sales, Market share...
_ Brand equity _Utilitarian value
_ Customer equity _Edonistic value

Figure 2 General Framework

education, etc.) about the respondents; the second


Gatorade iPod Harley-Davidson investigates the motivations on the basis of the pur-
Coded
Pringles Playstation Smart chase by analyzing the role of the experiential fea-
Type of knowledge embedded
tures; the last section is aimed at comparing the
Haute Couture
evaluation of the different components in order to
Brand Bars
Nike Ikea
understand which one the customers consider as
Tacit
McDonald’s
Swatch Swarovski most relevant. The questionnaire was administered
to the sample both in paper and electronic format
Non durable Durable
(Medium range)
Durable
(Long range)
(on the WWW).
Durability

Figure 3 Sample of Selected Cases Data Analysis

The framework for the analysis of the data is based


mentioned work by Calder and Malthouse, 2006) and on the conceptualization of the Customer Experience
on the ground of the fact that data collected through as a multidimensional concept. The first analysis was
questionnaires permit the use of specific statistical carried out on the collected data to assess the relative
analyses, which can be applied to explore the inter- weight of the utilitarian value when compared to the
nal structure of the Customer Experience, as it has hedonic value.
been conceptualized in our study.
In a second phase each component of the Customer
The questionnaire has been submitted to a non-statis- Experience has been analyzed to investigate how
tical sample of almost 200 units (for each analyzed customers evaluated it and how much relevant it
product, totaling 2368 units) chosen among individu- was when compared with the others. This part of
als, between 16 and 55 years, who usually buy/use the analysis was aimed at defining the interpretative
the considered product (for further information on model (see paragraph 6).
the sample, please refer to the sample description
in Appendix 1). We outline that the choice of A factor analysis was carried out to explore the inter-
employing a non-statistical sample implies some nal structure of the dataset, additionally, further
problems on results generalizability; this issue, how- qualitative analyses and a cluster analysis (for some
ever, can be considered as being not too relevant due specific cases in which it seemed relevant to identify
to the explorative nature of the research. The pro- the existence of differences in customer behavior and
posed interpretative model, in fact, can be subse- evaluations) were conducted.
quently validated and tested on the basis of a
multiple case study analysis.

The administered questionnaire (a sample of which Results of the Survey


can be found in Appendix 2) had been pre-tested
on a small sample of consumers, hence the final ver- As mentioned in the previous paragraph the analysis
sion is made up of three parts: the first is aimed at of the data obtained by the survey was aimed at
collecting demographical information (age, gender, reaching two main results:

400 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

v the comprehension of the relative weights of the nent is associated to certain group of customers,
experiential features over the functional ones in which represent only a fraction of the entire market
the perception of value (for each of the twelve (i.e. the relational component tied with collecting
product analyzed); practices). Consequently, the average score reported
v the definition of the contribution of each experi- by such component is substantially lowered by the
ential component to the overall evaluation of large part of the sample which is definitely not inter-
the offer. ested in this kind of component of the Customer
Experience. As expected, a cluster analysis confirmed
this line of reasoning isolating two clusters of cus-
tomers, one remarkably affected by the relational
Utilitarian vs. Hedonic Value component, the other substantially indifferent.

The first analyses were oriented at determining the


relevance of the whole hedonic value as compared Experiential Components
to the utilitarian one. Figure 4 presents the results
The second set of analyses was oriented at determin-
and demonstrates that overall the experiential fea-
ing the scores of each experiential component for
tures are perceived by customers almost as much rel-
each product under analysis. The results have been
evant as the functional ones, indeed 7 products out of
summarized in Figure 5 (scores have been calculated
12 have been classified as ‘‘balanced’’ and 2 products
as mean of the scores of the components of the Cus-
have been reported to be ‘‘hedonic’’: Harley David-
tomer Experience).
son and Smart. Such observations should however
be tempered with the consideration that certain types
Scores have been divided into three sets according to
of experiences are particularly difficult to be investi-
their distance from the mean of the scale used (which
gated simply by means of a questionnaire. Those are
is 2.5); namely: scores much above the mean, scores
experiences which indeed are felt by a customer but
near the mean or slightly above and scores below
often at a sub-conscious level, thus a quick and
the mean.
superficial analysis, such as that performed while
responding to a questionnaire, is likely to miss or
Additionally, two considerations can be drawn from
underestimate their real impact. Further, people
Figure 5:
often show a tendency to undervalue the influence
of communication campaigns, advertising and other
v the value associated with the sensorial compo-
marketing strategies on their purchase decisions;
nent is substantially high (above the mean)
often an impulse purchase, mainly dictated by irra-
across all the considered cases;
tional motivations, is later re-interpreted in rational
v the value associated with the relational compo-
terms and thus underestimated in the reported per-
nent does not vary sensibly across products
ceptions of a questionnaire.
and it is lower than expected, indeed no occur-
rences have been reported to be much above
As for the relational component, the analysis from
the mean. This can be explained, as previously
secondary sources showed that such kind of compo-
mentioned, by the presence of two different
groups of consumers within a given polled sam-
ple, one of those being substantially indifferent
Hedonic Value Utilitarian Value Type of product to the specific experiential component.
SWATCH 2.40 3.13 Utilitarian* Given such particularities, in defining the interpreta-
PRINGLES 2.13 2.91 Balanced tive model (proposed in the next paragraph) we
HARLEY DAVIDSON 3.03 1.71 Hedonic*

SMART 2.98 2.63 Hedonic*

IPOD 3.02 3.35 Balanced

NIKE 2.28 3.07 Utilitarian*

H.C. BRAND BARS 2.48 2.93 Balanced

PLAYSTATION 2.59 3.22 Balanced

GATORADE 2.56 2.81 Balanced

MCDONALD’S 2.31 3.04 Utilitarian*

IKEA 2.81 3.06 Balanced

SWAROVSKI 2.65 3.08 Balanced

Figure 4 Main Results of the Survey (a). *ANOVA:


p-value < 0.05 Figure 5 Main Results of the Survey (b)

European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 401
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

decided to analyze separately the sensorial and the


Score Sensorial Link with core
relational component. Experience functionalities

SWATCH 3.48 Sight No

Complex Experiences PRINGLES 2.65 Taste Yes

HARLEY DAVIDSON 3.53 Sight No


The main objective of the factor analysis was to study
whether the experiential components were actually SMART 2.70 Sight No

being perceived separately by customers or not. Such IPOD 3.63 Hearing Yes
investigation is important both from a theoretical NIKE 3.21 Sight No
perspective and from a managerial perspective. The-
oretically, as we hypothesized the existence of com- H.C. BRAND BARS 3.62 Sight No

plex experiences whose modularity cannot be PLAYSTATION 2.90 Sight&Hearing Yes


decomposed (as perceived by customers), and mana-
GATORADE 2.53 Taste Yes
gerially since managers, while greatly benefiting
from a simple and straight-forward tool (operating MCDONALD’S 2.67 Taste Yes

on single and separated components) definitively IKEA 3.31 Sight Yes


ought to take into account potentially complex inter-
SWAROVSKI 3.63 Sight Yes
actions, should they be identified in the factor
analysis.
Figure 6 Typologies of Sensorial Component

Indeed, the results of the factor analysis showed that


each case reported both pure components (that is, this uniformity of results, an in-depth analysis
factors that can be related to a single experiential revealed that whenever a clear link between the core
component) and ‘‘mixed components’’ (that is, fac- functionality of a product and a natural sense could
tors whose variables belong to different experiential be established (e.g. iPod/hearing, Pringles/taste,
components). Mixed components can be considered etc.) then that specific sensorial component was per-
as a cue for the hypothesized existence of interrela- ceived as being the most relevant for the user. On the
tions between components, which in turn stand for other hand, when a clear link could not be identified,
complex experiences. Complex experiences thus the results showed that sight was the sense perceived
emerge as specific case in which the components as most important.
are so intimately intermingled that consumers are
unable to draw any separation between them. Figure 6 reports when such a link could be estab-
lished between core functionalities of a product and
An example of the results of the factor analysis for the specific sensorial component.
the iPod case is reported in appendix.
Such observation poses some caveats from a manage-
rial point of view, and specifically when conceiving
The Interpretative Model how and what specific features of the offering should
be framed so as to address the sensorial component.
The interpretative model consists of two parts. First
of all, on the bases of the evidence reported in the
discussion of the results, other qualitative analyses Commitment/Involvement Matrix
were carried out to infer further insight on the senso-
rial component. The analysis of the scores reported in association to
the emotional, cognitive, pragmatic and lifestyle
In the second part, first we analyze the relevance of components suggested the definition of two variables
the four components that reported the highest differ- that could account for the differences of relevance
ences in scores among the analyzed cases: emotional, reported for the four components. Namely the two
cognitive, pragmatic and lifestyle. Then, the rela- variables are:
tional component was analyzed separately: taking
into account the results of the cluster analysis, the v Customer involvement, which is the level of impor-
model defines different typologies of relational com- tance a customer attributes to an object, an action
ponent proposing a link between them and the char- or an activity and the enthusiasm and interest
acteristics of the product analyzed. The output of this they can generate (Dalli and Romani, 2000; Gold-
second part is the Commitment/Involvement Matrix. smith and Emmert, 1991). Such variable is
affected by two factors: cost of the offering (both
in absolute terms and in relative terms when
Sensorial Component compared with competitors’) and impact on the
customer’s self image. In this case, a higher cost
As before mentioned, the sensorial component was of the offering requires a greater willingness to
reported to score high across all the cases. Despite pay, which is more likely to be attained when

402 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

the offer provides a significant emotional compo-


Cognitive Pragmatic Pragmatic + Cognitive
nent. On the other hand, when a product has a Component Component Components
relevant impact on one’s image the sharing of
the values embedded in the offer is fundamental SWATCH 1.65 2.74 2.19

(lifestyle component). PRINGLES 1.60 2.95 2.28

HARLEY DAVIDSON 3.42 2.34 2.88


These assumptions can be compared with the data
collected to verify the existence of a relation between SMART 2.96 3.63 3.30
customer involvement and the emotional and life-
IPOD 2.46 3.68 3.07
style components. Considering the means of the
score obtained for the two modules and contrasting NIKE 1.33 3.57 2.45
them with the 2.5 cut-off value (mean of the 1-4 Lik- H.C. BRAND BARS 1.55 N.R. 0.78
ert scale) it was possible to divide the analyzed cases
into two groups: one set with scores higher than the PLAYSTATION 2.60 3.32 2.97

mean (marked in grey in Figure 7), and the other set GATORADE 3.12 2.67 2.90
with scores lower than the mean (marked in white in
1.86 2.44
Figure 7) and thus ascertain that actually the first MCDONALD’S 3.01

group includes cases characterized by higher IKEA 2.09 3.03 2.56


involvement than the ones in the second group.
SWAROVSKI 2.44 N.R. 1.22

v Customer commitment, which is the effort in terms


Figure 8 Cognitive and Pragmatic Components.
of resources the customer makes to use the prod-
ANOVA: p-value < 0.05
uct (adapted from Grandinetti and Paiola, 2003).
Such variable is influenced by two factors: pur-
chase/use frequency and level of complexity in modules and contrasted them with the 2.5 cut-off
using the product. A higher level of the former value (mean of the 1-4 Likert scale).
makes an easy and comfortable use/consump-
tion (pragmatic component) desirable; a higher Hence, it was possible to divide the analyzed cases
level of the latter requires a greater rational into two groups (one group with scores higher than
engagement (cognitive component). the mean, marked in grey in Figure 8, and the other
with scores lower than the mean, marked in white in
As before, we compared these hypotheses with the Figure 8) and verify that actually the first group
data collected to search for the existence of a link includes cases characterized by higher commitment
between customer commitment and the cognitive than the ones in the second group.
and pragmatic components. Even in this case we con-
sidered the means of the scores obtained for the two Customer Commitment and Customer Involvement
were used to explain the relevance of the four com-
ponents; in the case of the relational component the
same two variables could be applied to describe
three sub-typologies of the relational component.
Accordingly, three kinds of relational component
Emotional Lifestyle Emotional + Lifestyle
could be identified:
Component Component Components (mean)

SWATCH 3.03 2.28 2.65


v absent or superficial: when a low-level customer
involvement is present the relational component
PRINGLES 1.79 1.53 1.67
stems from interpersonal relationships that are
HARLEY DAVIDSON 3.83 2.85 3.34 temporally limited to the time spent while using
SMART 3.59 2.82 3.21
the product (e.g. Playstation and Pringles);
v connected to collecting practices; when the rela-
3.45 3.27
IPOD 3.08
tional component is more intense than in the pre-
NIKE 1.31 1.98 1.65 vious case (due to the high level of customer
H.C. BRAND BARS 2.66 1.98 2.32
involvement), but the low commitment level
indicates that the relational component is mainly
PLAYSTATION 2.44 2.02 2.23
generated by collecting practices stemmed from
GATORADE 2.71 1.83 2.27 the ownership of the product (e.g. collectors
clubs for Swatch and Swarovski);
MCDONALD’S 2.15 N.R. 1.08
v profound: for the high-involvement/high-com-
IKEA N.R. N.R. 0 mitment products the relational component is
SWAROVSKI 2.65 2.90 2.78 even more intense and is due to the existence
of communities of customers. In this case, inter-
Figure 7 Emotional and Lifestyle Components. ANOVA: personal relationships are built not exclusively
p-value < 0.05 on a common interest, but on shared lifestyles

European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 403
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

according to the matching association between the


Target Scope Source/occasion reported scores and a given configuration of the set
of four components. Furthermore, depending on
the combination of the Commitment/Involvement
Absent or superficial Whole target market Usage of the product
couple, the relational component assumes one of
the three sub-typologies earlier specified (also
reported in Figure 10).
Profound Specific segment within Ownership and usage of
(community) the target market the product
Finally, once each product has been positioned in the
matrix, one can observe how the chosen variables
suitably characterize the four clusters obtained.
Collecting Specific segment within Ownership of the
the target market product

Conclusions and Future Developments


Figure 9 Relational Component: Target Scope and
Sources
The above analyses show how important it is to pay
attention to the new arising tendencies in customers’
and systems of values and are originated both behavior interpretation. The study proved that a rel-
from the joint usage/consumption of the product evant part of the value proposed to customers, and
and from its ownership (e.g. Harley Davidson actually recognized by them, is linked to experiential
and Smart). features; we found that, regardless of the context,
customers want to live positive consumption experi-
Each sub-typology of the relational component pre- ences. Living a positive Customer Experience can
sents specific characteristics depending on the scope promote the creation of an emotional tie between a
of the target for which the relational component is firm’s brand and its customers which in turn enhance
relevant, and on the sources and the occasions in customer loyalty. Yet this does not imply that cus-
which the relational component is originated and tomers neglect the importance of functionalities:
takes place (Figure 9). sometimes as required standard, sometimes as fac-
tors enabling an optimal experience. We notice that
Considering the two proposed variables, the role the functional value (or utilitarian value) obtains
played by the relational component and the results almost always (except in two cases) a score near
reported in Figure 7 and in Figure 8, a four-quadrant the experiential (hedonic) one; in some cases even a
matrix (Figure 10) can be drawn. Each quadrant con- little higher. Therefore this part of the study based
tains offers with a specific combination of the Com- on the analysis of best practices proves that it is
mitment/Involvement couple. Accordingly, each important to deliver an adequate balance between
quadrant identifies a specific configuration with utilitarian and hedonic value.
respect to the four components considered. The
products were then positioned within the quadrants The results also show that these successful products
involve customers’ senses, emotions, thoughts, acts,
values and relations in different ways: each product
leverages on more than one component, the particu-
lar combination depending on the characteristics of
High

Gatorade, Ikea, Harley-Davidson,


Playstation iPod,Smart the product itself. Furthermore, we can infer that,
CUSTOMER COMMITMENT

C+P E+L+C+P by leveraging on more components, it is theoretically


R: Absent or R: Profound possible to intensify the whole hedonic value thanks
superficial (community)
to the existence of positive interferences among the
activated components. Hence, resting on psychologi-
cal and sociological interpretations about the genera-
McDonald’s,
H.C. Brand Bars,
Swarovski, tion and elaboration of sensations, thoughts,
Swatch
Pringles,Nike emotions, behaviors and relationships and of their
R: Absent or E+L interactions and interrelations (Goleman, 1995), we
Low

superficial R: Collecting can hypothesize the existence ‘‘complex experi-


ences’’ involving more than a single component.
Low High Indeed, we found that each of the products we ana-
lyzed leverages on some experiential components;
CUSTOMER INVOLVEMENT but at a deeper investigation, we noticed that the
components are not activated independently: some-
Labels: C = Cognitive component
E = Emotional component P = Pragmatic component
times there are relevant overlapping areas and clear
L = Lifestyle component R = Relational component interrelations, as reported by the factor analysis (pos-
sibly an issue to be further investigated in future
Figure 10 Commitment/Involvement Matrix researches). From a managerial viewpoint, this

404 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

observation suggests that when devising a value v which sensorial component should characterize a
proposition focused on the Customer Experience, new offer (in the light of its core functionalities);
companies should carefully regard at potential inter- v which components of the Customer Experience
actions between the components of the Customer are consistent with the levels of Customer
Experience on which their products leverage so as Involvement and Customer Commitment of the
to fully exploit the effects above described. offer;
v which sort of relational component is to be acti-
vated when dealing with different levels of cus-
Managerial Implications tomer involvement and customer commitment
of a specific offer.
Due to the lack of a rigorous phase of validation of the
suggested model, we need to precise that the results
do not allow a straight generalization. However, that Next Developments
notwithstanding, we can still draw some implications
and suggestions aimed at supporting a manager in The main drawbacks of this study are connected to
devising a value proposition, especially when the the fact that complex experiences (that is, experiences
value delivered to the customer should ideally be dri- originating from the interaction of two or more com-
ven both by experiential features (hedonic/experien- ponents) were isolated in the factor analysis but not
tial value) and by functional characteristics accounted under the interpretative model.
(utilitarian/functional value), thus possibly increas-
ing the odds of a good market response. Such interactions could be further explored by means
of a multi-way ANOVA so as to isolate both the main
We sum up these indications into four guidelines: effects of the ‘‘pure’’ components and account for the
interaction effects which originate the complex
1. Develop Experience-driven innovations; more than experiences.
Technology push or Market driven innovations,
the ones leveraging on experience have better Moreover, while our study was not intended to
chances to get a positive market response as they develop a general scale for measuring each experien-
seem more likely and more capable of meeting tial component, we recognize that such is an impor-
new customers’ needs; tant area which deserves a specific investigation.
2. Consider the functional features of the commercial offer
in order to create a sustainable competitive advan- Another avenue for a further path of research would
tage with respect to competitors. Because the util- entail the exploration of whether certain types of
itarian value is still one of the main drivers of experiences (such as very common experiences or
customers’ evaluation and perception of a new experiences which are particularly familiar to a cus-
product, it ought to be paid full attention, particu- tomer) can still be accounted as a legitimate Cus-
larly when those functionalities act as enabling tomer Experience. In this respect it would be
factors for great experiences. interesting to account for a sort of updating mecha-
3. Provide a venue for an integrated Customer Experience nism whereby the expectations of a customer are sys-
according to the position in the ‘‘Consuming tematically updated as he or she lives a specific
Experience’’ continuum where the Customer experience.
Experience is being provided. Specifically, when
experiences are mainly created by consumers, A further advancement of the research would take
the experiential features of the product or service into considerations the sets of experiences that can
being offered should be systematically addressed be originated across each specific stage of the pur-
(as it is for Pringles and Gatorade cases). In the chasing process (e.g. in-store experience), thus
case of experiences that are co-developed by com- exploiting a much wider scope of experience than
panies and consumers, companies should enable the one which can be offered by mere products.
the molding and forging of a consumer’s own
experience by providing the experiential basic Eventually, a further validation of the model is
materials (as it is for Harley-Davidson case). needed, for instance by means of multiple case stud-
Finally, for experiences that are mainly created ies so as to achieve an analytical generalizability.
by companies, the whole set of products, services
and context should be addressed in a systematic
and consistent way (as it is for McDonald’s and Acknowledgement
Haute-Couture Brand Bars cases).
4. Keep in mind that the different components of the Cus- The authors would like to thank the anonymous ref-
tomer Experience depend on the characteristics of a erees and the editor of this paper (Prof. H. Laroche)
given product. for the insightful comments and suggestions. The
authors also gratefully acknowledge the support of
Specifically, at an operational level, the proposed Fabrizio Rossi and Pablo Daini for their collaboration
interpretative model can be used to identify: in survey data collection and preliminary analysis.

European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 405
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

Appendix 1. Sample Description

Product Number of Sex Age


questionnaires
F (%) M (%) 16–20 (%) 21–30 (%) 31–40 (%) 40–55 (%)
Swatch 221 37 63 25 41 1 33
Pringles 184 48 52 21 59 16 4
Harley Davidson 219 6 94 0 28 54 18
Smart 207 11 89 7 63 24 6
iPod 187 6 94 20 57 16 7
Nike 198 17 83 25 55 15 5
H.C. Brands Bar 188 40 60 16 59 22 3
Playstation 239 4 96 47 45 7 1
Gatorade 191 24 76 33 48 14 6
McDonald’s 186 49 51 29 52 14 5
Ikea 174 69 31 4 64 25 7
Swarovski 174 81 19 4 50 33 13
Education level Region Employment Status
High school Degree or North Centre- Homemaker + Student Employed
or less (%) more (%) (%) South Unemployed + (%) (%)
(%) Retired (%)
Swatch 51 49 77 23 3 41 56
Pringles 46 54 82 18 3 55 41
Harley Davidson 76 24 83 17 1 5 94
Smart 83 17 61 39 0 24 76
iPod 67 33 70 30 1 43 56
Nike 70 30 67 33 3 55 42
H.C. Brands Bar 62 38 98 3 0 34 66
Playstation 89 11 50 50 4 59 37
Gatorade 80 20 75 25 2 50 48
McDonald’s 73 27 59 41 5 44 51
Ikea 58 42 77 23 3 29 68
Swarovski 66 34 68 32 12 22 66

Appendix 2. Questionnaire (iPod)


Demographic information
Age
 Less or equal to 20  31–40
 21–30  More than 40
Gender
 Male  Female
Education
 High school or less  Degree or more advanced
Employment
 Homemaker  Employed  Retired
 Student  Unemployed
City/town of residence:________________________

Respondent-product interaction information


How often do you use your iPod?
 Often, once or more frequently a day
 Occasionally, some times a week
 Rarely, some times a month

406 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

Appendix 2 (continued)

Respondent-product interaction information


What is the main reason that you use your iPod?
 Listen to the music
 Record conversations
 Store any kind of files
 Other reasons (please specify): ____________
Please tell us the main reasons why you chose an iPod over other mp3 players (please select at maximum 3
answers)
 Quality/price ratio
 Performance (battery life, quick file transfer. . .)
 Aesthetical aspects
 Ease of use
 Distinctiveness with respect to other mp3 players
 Apple brand
 Opportunity of being part of a community
 Other reasons (please specify): ____________
Please tell us which of the following statements about you and your iPod are true:
 I use it to record conversations
 I use it to transfer any kind of file
 I use speakers to listen to my music even without earphones
 I use extra functions of my iPod such as the diary, the alarm, the calendar, etc.
 I play with my iPod’s included games
Please tell us how much you agree / disagree with the following statement (1-4 Likert scale)
 It is easy and comfortable to use
 The interface is user-friendly
 File transfer to and from a PC is quick and easy
 It is comfortable to carry and to use even in motion (dancing, running, working out. . .)
Please tell us how important each of the following statement is for you (1-4 Likert scale)
 Opportunity of being part of a community
 Opportunity of sharing and exchanging tunes with other iPod users
Please tell us how important each of the following features of the iPod is for you (1-4 Likert scale)
 Design
 Essential and slick style
 Color and material
 Sound clearness
 Sound quality
When do you normally use your iPod?
 When I want to relax
 When I want to have fun
 When I am travelling
 Other occasions (please specify): _____________
What kind of image about yourself do you think you are expressing when using your iPod?
 Young and active person
 A person different from the mass
 A person who loves having fun
 No specific image
 Other (please specify): _____________________
Please tell us how important each of the following features of the iPod is for you (1-4 Likert scale)
 Quality/price ratio
 Performance (battery life, quick file transfer, etc.)
 Aesthetical aspect (form factor, design, color,. . .)
 Sound quality
 Distinctiveness with respect to other mp3 players
 Image of the iPod (young, innovative, dynamic, etc.)
 Extra functions (diary, games, calendar. . .)
 Apple brand
 Ease of use
 Opportunity of being part of a community
 Use during moments of fun and entertainment

European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 407
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

Appendix 3. Factor Analysis iPod (6 factors)

Pure Components
Answers Coefficient Experience
typology
FACTOR 1: SENSORIAL COMPONENT
Sound clearness 0.848 Sensorial
Sound quality 0.859 Sensorial
FACTOR 2: PRAGMATIC COMPONENT
The interface is user friendly 0.807 Pragmatic
It is easy and comfortable to use 0.759 Pragmatic
FACTOR 3: RELATIONAL COMPONENT
Opportunity of being a member of a community 0.880 Relational
Complex experiences
FACTOR 4:SENSORIAL/LIFESTYLE COMPONENTS
Design 0.848 Sensorial
Elegant and essential style 0.773 Sensorial
Material and colour 0.717 Sensorial
Esthetical aspects (shape, colour, design. . .) 0.728 Sensorial
Specificity and distinctiveness with respect to other MP3 players 0.543 Lifestyle
iPod image (young, innovative. . .) 0.590 Lifestyle
FACTOR 5: PRAGMATIC/COGNITIVE/LIFESTYLE COMPONENTS
Simple and fast file transfer from P.C. 0.432 Pragmatic
Extra functions (diary, games, calendar. . .) 0.660 Cognitive
Existence of a dedicated line of accessories (loudspeakers, 0.707 Cognitive
cases, car accessories,. . .)
Prestige and fame of Apple brand 0.462 Lifestyle
FACTOR 6: PRAGMATIC/RELATIONAL/EMOTIONAL COMPONENTS
It is easy-to-carry and to use even in motion (dancing, running, working out. . .) 0.468 Pragmatic
Opportunity of sharing musical files with other iPod owners 0.557 Relational
Usage for fun/entertainment 0.776 Emotional

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European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007 409
HOW TO SUSTAIN THE CUSTOMER EXPERIENCE

CHIARA GENTILE, GIULIANO NOCI,


Dept. of Management, Dept. of Management,
Economics and Indus- Economics and Indus-
trial Engineering, Poli- trial Engineering, Poli-
tecnico di Milano, P.zza tecnico di Milano, P.zza
Leonardo da Vinci 32, Leonardo da Vinci 32,
20133 Milano, e-mail: 20133 Milano, e-mail:
chiara.gentile@polimi.it giuliano.noci@polimi.it

Chiara Gentile is a Ph.D. Giuliano Noci is Full


Student in Management Professor of Marketing at
Engineering at Politecnico Politecnico di Milano,
di Milano. Her research Dean of the Degree in
interests are in the field of Marketing, with a special Management Engineering of the Como campus
focus on Customer Experience Marketing, Customer (Politecnico di Milano), Member of the Executive
Equity, Customer Lifetime Value. Committee of MIP Business School and Scientific
Director of the Marketing area in all the MBA pro-
grammes.
NICOLA SPILLER, His research interests are in the field of Marketing,
Dept. of Management, with a special focus on experiential marketing. He has
Economics and Indus- directed and run executive courses and consulting to
trial Engineering, Poli- several manufacturing and service firms.
tecnico di Milano, P.zza
Leonardo da, Vinci 32,
20133 Milano, e-mail:
nicola.spiller@polimi.it

Nicola Spiller is a Ph.D.


Student in Management
Engineering at Politecnico
di Milano. His research
interests are in the field of Marketing, with a special
focus on Brand Management, Private Labels, Retailing
and Customer Experience.

410 European Management Journal Vol. 25, No. 5, pp. 395–410, October 2007

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